Contracting to an Australian Company while staying a NZ Tax Resident

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Forums › Finance and wealth management › Contracting to an Australian Company while staying a NZ Tax Resident

Yogi02

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Master Geek
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#280980 23-Jan-2021 09:55

Hi team, I'm a little bit stuck here.

I've been approached from a previous peer in Aussie to do some contracting work in New Zealand for his Australian company (Due to Covid travel restrictions).

His preference is to pay me into an Australian Bank Account (I already have one set up via Transferwise)

My main income is currently and will remain NZ based salary, this is very much just a side income.

There are also NZ based contracting opportunities (Very small and intermittent) that I have just started as well and I have filled in an IR3 and with-holding tax removed.

Any tips from previous experience as to setting up for Tax payments/transfers between NZ and Australia?

I would be surprised if it goes above $10k per year.

I will be looking to go to an accountant at some point, but would love some advice before I confirm details of this new role

TIA

OldGeek

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#2640615 23-Jan-2021 13:20

I did this personally but I was working full-time and occasionally required to travel to Sydney for a week in the office there. I billed through my nz-registered company by presenting Invoices in Australian Dollars, with payment into my company bank account in NZ. The payment came through as credit originated from Australia and therefor listing the Aus dollars, the exchange rate and the converted amount deposited in NZ dollars.

There was no requirement to file any documentation to any Australian authority. There is no GST involved on the invoices, although all NZ-based expenses were claimed as normal. The company was registered in NZ for GST.

My Daughter has just returned to NZ from Australia and continues to work for her Australian employer. We are treating her as a sole trader, issuing invoices in the same way.

I would therefore suggest your invoices be paid into your NZ bank account. There should be no need for an Australian account.

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OldGeek.

Quic referal code: https://account.quic.nz/refer/581402 and use this code for free setup: R581402E48MJA

Kyanar

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#2643247 27-Jan-2021 22:00

You should be safe based on your estimate of <$10k/year. If you supply services in excess of $75k per year, then you must charge (and remit to the ATO) GST, unless the services are to a GST registered business (easy to find out, just look them up on the ABR). That's assuming you invoice in your capacity as a business. If they intend to pay you a salary, then - sorry - you'll need a tax file number and to file taxes with the ATO.

BlinkyBill

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#2643297 28-Jan-2021 07:02

You should go to an accountant now, at least she will give you advice that applies to your circumstances.

tchart

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#2643397 28-Jan-2021 10:00

Just an FYI you shouldnt be charging GST for services provided to international clients.

https://www.ird.govt.nz/gst/charging-gst/zero-rated-supplies

Kyanar

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#2643566 28-Jan-2021 13:28

tchart:

Just an FYI you shouldnt be charging GST for services provided to international clients.

https://www.ird.govt.nz/gst/charging-gst/zero-rated-supplies

Unless it's to Australia, who requires you to register for, collect, and remit to the ATO for any services provided to Australian clients - provided you exceed the GST registration threshold of $75k AUD.